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Gold Market Analysis

Gold prices moved lower after a week of consolidation

Gold prices plummeted against the dollar despite declining US Treasury yields. Since gold prices are quoted in US dollars, a strong greenback will usually weigh on the value of the yellow metal. Prices have improved as the dollar has reached a higher level. The 10-year Treasury yield dropped 4-point after a substantial decline on Monday.

In short, his testimony led to the strength of the dollar, which was the primary factor in lowering gold prices. As the 5PM EST gold futures base, the most active April 2021 contract is currently stable at $ 1725.50, following today’s drop of $ 12.50 (-0.72%). Simple mathematics determines that only 0.10% was responsible for market participants selling the precious yellow metal, with the remaining declines directly attributable to the stronger dollar. The US Dollar Dollar index closed up 62 points, or 0.68%, and is currently stable at 92.365.

Silver pricing was much tougher today, with the most active May 2021 contract currently fixed at $ 25.095, a drop of 2.63%. This means that the steep decline in today’s silver can be directly attributed to market participants who are actively selling precious white metal.

This can also be clearly depicted when we look at the KGX (Kitco Gold Index). In the case of Spot Gold, KGX is currently pricing at $ 1727.20, a net drop of $ 12.10 on the day. In the fall of $ 12.10, the dollar’s strength contributed to $ 10.40, with the remaining $ 1.70 decline attributable to selling pressure. However, silver losses were mainly due to selling pressure, resulting in a 2.60% drop today. KGX is currently fixing silver at $ 25.01, a net drop of $ 0.73 per ounce. Selling pressure directly due to the strengthening of the dollar, down 2.24%, or $ 0.58, down $ 2.15.

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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